We all have a financial plan

We all have a financial plan. Yours is titled: whatever you are doing right now. And it may be more sophisticated and convoluted than you think. Your financial plan involves cash flow decisions; ordering Uber Eats while watching the royal wedding. It includes a real estate component; renovate the family home instead of buying a new house. And it even involves a tax efficiency strategy; voting for the whichever party will lower your tax bracket the most.

But like everything in life, some decisions are better than others. The problem with managing your own financial plan, is that it’s prone to subjective irrationality. For example, this morning, the Australian markets are set to open lower due to the weakness of ASX futures trading over the weekend. Later today, Westpac are on the stand of the Banking Royal Commission. And over the next few weeks, the global economy will watch as the US government places a pause on its threatened trade tariffs on Chinese goods. What does all this mean? And how does this volatility in different sectors of the global economy reverberate through your personal investment portfolio and the micro-economy that is yours and your family’s life?

These questions above are far too big for one person to adequately think about, particularly when you have a job to attend and family to look after. These are the sort of questions which should be handled by a dedicated team.